Thursday, August 18, 2005

Quicken Loans Equals Funny Math

I keep hearing these ads on the radio for Quicken Loans. Today, I hear one, and they proclaim I can get a 1.9% APR for a $200,000 loan, and my monthly payment would be somewhere between $300 and $400 per month. I don't recall the exact figure, but an estimate is enough for my purposes here.

So let's do some math. Real simple math.

$400 * 360 payments (30 year loan) = $144,000

I may not be the world's best mathematician, but even I know that $144,000 does not equal $200,000! So what's the catch? There is some serious fudging of numbers in these ads. If you go to the website, and you try and get a similar loan, you can't get any of the calculators to achieve the numbers they claim. I never thought you could, and simple proves you can't. I think that someone needs to get them for FALSE ADVERTISING!